Dubai Real Estate market is projected to add 25,000 new homes by the end of the year, as detailed in the Q2 2024 real estate report. Dubai’s strong economy and attractive lifestyle continue to draw expatriates.
The sector’s solid fundamentals are driven by high equity in the market, sustained economic growth, infrastructure development, and a growing population.
Dubai Real Estate Q2 2024 Highlights
The report indicates a slower pace of new supply delivery in Q2 2024 compared to Q1, with approximately 6,750 residential units completed.
Nonetheless, project launches remained strong, featuring a diverse range of developments from low-rise buildings and skyscrapers to large master-planned communities.
Looking forward, an additional 25,000 residential units are anticipated to be delivered in the latter half of 2024, although some may be delayed until 2025.
Apartment and villa rental rates increased by 3 percent and 2 percent respectively on a quarterly basis, while annual rental growth moderated to single digits, with apartments rising by 8 percent and villas by 4 percent. This growth is primarily due to the updated RERA rental index, allowing landlords to implement larger rent increases upon lease renewal.
The office rental market continued to perform well, particularly for Grade A spaces, driven by strong demand and limited supply. Upward pressure on rents is expected to persist until new supply is available or business conditions change.
Dubai’s sales market remained strong, driven by ongoing project launches that boost off-plan transactions. Q2 2024 saw a steady 2 percent growth in average sales prices, with certain areas like Jumeirah Village and Business Bay experiencing above-average growth.
This trend is attributed to increased demand and a significant rise in both off-plan launches and newly completed developments. These new projects often offer superior quality compared to earlier ones and are priced accordingly.
The off-plan property market maintained significant momentum, with both local and international investors eagerly acquiring newly launched units, attracted by strong returns on investment in a tax-friendly environment.
Additionally, some lenders began offering enhanced financing options for off-plan properties, allowing buyers to secure up to 10 percent more funding during construction. This additional funding is typically available for projects with at least 50 percent construction progress, mitigating risk for the lender. This strategy not only stimulates the off-plan market but also increases accessibility for potential buyers.